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Past papers › Cost & Mgmt › July 2021

CA Inter Cost & Mgmt — Revision Test Paper (RTP) — July 2021

This page contains all 46 questions from the CA Inter Cost & Management Accounting Revision Test Paper (RTP) for the July 2021 attempt cycle, sourced from VSI Jaipur.

QGST-1GST exemption on hiring of motor vehicles to Government enti
0 marks easy
Case: M/s Aditi & Co, a partnership firm registered under GST, is undertaking various Government projects. The firm has let out on hire the following vehicles: (i) A motor vehicle to carry more than 15 passengers to a State Government Electricity Department; (ii) An electric motor vehicle to carry more than 12 passengers to Local Municipal Corporation; (iii) An electric motor vehicle to carry upto 12 passengers to State Transport Undertaking. Additional information for the month of October: (i) Works contract services were availed for construction of immovable property being plant and machinery; GST…
In respect of vehicles let out on hire by the firm, services that are exempt from GST are: (i) Letting on hire a motor vehicle to State Electricity Department (>15 passengers); (ii) Letting on hire an electric vehicle to Local Municipality (>12 passengers); (iii) Letting on hire an electric vehicle to State Transport Undertaking (<12 passengers).
(A) (i)
(B) (ii)
(C) (i) and (iii)
(D) (ii) and (iii)
QGST-10Composition scheme for service providers, section 10(2A) CGS
0 marks easy
"Wedding Bells", a wedding photographer, has commenced providing pre-wedding shoot services in Jaipur from the beginning of current financial year 2020-21. Details of turnover for various quarters till December 2020: Q1 (April–June 2020) ₹20 lakh; Q2 (July–September 2020) ₹30 lakh; Q3 (October–December 2020) ₹40 lakh. Assume the applicable tax rate as 18%. Wedding Bells wishes to pay tax at a lower rate and opts for the composition scheme. You are required to advise whether it can do so and calculate the amount of tax payable for each quarter.
QGST-11GST on director remuneration, reverse charge, Schedule III C
0 marks easy
Mr. Priyam, director of Sun Moon Company Private Limited, provided service to the company for remuneration of ₹1,25,000. Briefly answer whether GST is applicable in the below mentioned independent cases? If yes, who is liable to pay GST?
QGST-12GSTR-3B filing obligation, nil return, SMS filing
0 marks easy
Miss Kashi is a registered intra-State supplier of goods in Haryana.
QGST-13E-invoicing under GST, aggregate turnover threshold of ₹500
0 marks easy
Bali Limited, a registered taxpayer, provides security services to registered persons from Mumbai office and Delhi office. The aggregate turnover of Mumbai office and Delhi office in the preceding financial year is ₹300 crore and ₹250 crore respectively. For the month of November in the current financial year, Bali Limited prepares duplicate invoices and does not issue e-invoice as it is of the view that its aggregate turnover does not cross the threshold limit to make it liable for issuing e-invoices. Briefly explain whether the view taken by Bali Limited is correct in law? Also explain the advantages of e-invoicing, if any.
QGST-2Eligible Input Tax Credit, blocked credits under GST
0 marks easy
Case: M/s Aditi & Co, a partnership firm registered under GST, is undertaking various Government projects. The firm has let out on hire the following vehicles: (i) A motor vehicle to carry more than 15 passengers to a State Government Electricity Department; (ii) An electric motor vehicle to carry more than 12 passengers to Local Municipal Corporation; (iii) An electric motor vehicle to carry upto 12 passengers to State Transport Undertaking. Additional information for the month of October: (i) Works contract services were availed for construction of immovable property being plant and machinery; GST…
Determine the amount of eligible ITC to be claimed by the firm for the month of October.
(A) ₹70,000
(B) ₹1,10,000
(C) ₹1,80,000
(D) Nil
QGST-3ITC reversal on non-payment to supplier within 180 days
0 marks easy
Case: M/s Aditi & Co, a partnership firm registered under GST, is undertaking various Government projects. The firm has let out on hire the following vehicles: (i) A motor vehicle to carry more than 15 passengers to a State Government Electricity Department; (ii) An electric motor vehicle to carry more than 12 passengers to Local Municipal Corporation; (iii) An electric motor vehicle to carry upto 12 passengers to State Transport Undertaking. Additional information for the month of October: (i) Works contract services were availed for construction of immovable property being plant and machinery; GST…
Determine the amount of ITC to be added to the output tax liability.
(A) ₹40,000
(B) ₹60,000
(C) ₹1,00,000
(D) Nil
QGST-4Debit note and credit note under GST
0 marks easy
Case: M/s Aditi & Co, a partnership firm registered under GST, is undertaking various Government projects. The firm has let out on hire the following vehicles: (i) A motor vehicle to carry more than 15 passengers to a State Government Electricity Department; (ii) An electric motor vehicle to carry more than 12 passengers to Local Municipal Corporation; (iii) An electric motor vehicle to carry upto 12 passengers to State Transport Undertaking. Additional information for the month of October: (i) Works contract services were availed for construction of immovable property being plant and machinery; GST…
Which of the following is correct in respect of document to be issued by the firm for understatement and overstatement of invoice value? (i) Debit note is to be issued for ₹75,000. (ii) Credit note is to be issued for ₹75,000. (iii) Debit note is to be issued for ₹45,000. (iv) Credit note is to be issued for ₹45,000.
(A) i & iii
(B) ii & iii
(C) i & iv
(D) ii & iv
QGST-5Payment voucher under reverse charge mechanism
0 marks easy
Case: M/s Aditi & Co, a partnership firm registered under GST, is undertaking various Government projects. The firm has let out on hire the following vehicles: (i) A motor vehicle to carry more than 15 passengers to a State Government Electricity Department; (ii) An electric motor vehicle to carry more than 12 passengers to Local Municipal Corporation; (iii) An electric motor vehicle to carry upto 12 passengers to State Transport Undertaking. Additional information for the month of October: (i) Works contract services were availed for construction of immovable property being plant and machinery; GST…
Which of the following statements is correct in respect of supply of goods received by the firm which are taxable under reverse charge? (i) Firm shall issue a payment voucher at the time of making payment to supplier. (ii) Firm shall issue invoice for supply of goods. (iii) Firm shall issue receipt voucher at the time of making payment to supplier. (iv) Firm is not required to issue any document in respect of such supply.
(A) i
(B) i & ii
(C) ii & iii
(D) iv
QGST-6GST exemption on renting of residential property
0 marks easy
Sahil, a resident of Delhi, is having a residential property in Vasant Vihar, Delhi which has been given on rent to a family for ₹50 lakh per annum. Determine whether Sahil is liable to pay GST on such rent.
(A) Yes, as services by way of renting is taxable supply under GST.
(B) No, service by way of renting of residential property is exempt.
(C) No, service by way of renting of residential property does not constitute supply.
(D) Sahil, being individual, is not liable to pay GST.
QGST-7Taxes subsumed under GST
0 marks easy
Various taxes have been subsumed in GST to make one nation one tax one market for consumers. Out of the following, determine which taxes have been subsumed in GST: (i) Basic customs duty levied under Customs Act, 1962; (ii) Taxes on lotteries; (iii) Environment tax.
(A) (ii)
(B) (ii) and (iii)
(C) (iii)
(D) (i), (ii) and (iii)
QGST-8Definition of goods under section 2(52) CGST Act 2017
0 marks easy
Goods as per section 2(52) of the CGST Act, 2017 includes: (i) Actionable claims; (ii) Growing crops attached to the land agreed to be severed before supply; (iii) Money; (iv) Securities.
(A) (i) and (iii)
(B) (iii) and (iv)
(C) (i) and (ii)
(D) (ii) and (iii)
QGST-9Mandatory GST registration for inter-State supplier
0 marks easy
Mr. Z of Himachal Pradesh starts a new business and makes the following supplies in the first month: (i) Intra-State supply of taxable goods amounting to ₹17 lakh; (ii) Supply of exempted goods amounting to ₹1 lakh; (iii) Inter-State supply of taxable goods amounting to ₹1 lakh. Whether he is required to obtain registration?
(A) Mr. Z is liable to obtain registration as the threshold limit of ₹10 lakh is crossed.
(B) Mr. Z is not liable to obtain registration as he makes exempted supplies.
(C) Mr. Z is liable to obtain registration as he makes the inter-State supply of goods.
(D) Mr. Z is not liable to obtain registration as the threshold limit of ₹20 lakh is not crossed.
QIT-15TDS under sections 192A, 194A, 194-IB; TCS under section 206
0 marks easy
Examine and explain TDS/TCS implications in the following cases:
Q1Computation of taxable income under the head Salaries
1 marks easy
Case: Prabhat, 45 years old, Senior Manager-Finance at Nidhi Pvt. Limited with total earnings of ₹ 16,33,210. Employer contributes equivalent amount towards provident fund. Dearness allowance forms part of retirement benefit. Opted for Section 115BAC for A.Y. 2021-22 without submitting investment proof. Paid ₹ 55,212 medical premium for parents (aged above 60 years). Purchased house for ₹ 20,00,000 with home loan of ₹ 12,00,000 from HDFC (possession received 01/04/2021). Has 3 children in Samikshad International School with school fees of ₹ 97,000 (Child 1), ₹ 84,000 (Child 2), ₹ 1,08,000 (Child 3).…
What would be the amount of income chargeable to tax under the head 'Salaries' in the hands of Mr. Prabhat for the A.Y. 2021-22?
(A) ₹ 16,53,210
(B) ₹ 16,23,256
(C) ₹ 16,78,008
(D) ₹ 16,73,236
Q1GST - Exempted services
1 marks easy
Case: M/s A&S & Co., a partnership firm registered under GST, is undertaking various supplies
In respect of vehicles let out on hire by the firm, services that are exempt from GST
(a) (i), (iii) and (iv)
(b) (ii) and (iv)
(c) (i) and (ii)
(d) (iv) and (iii)
Q2Tax Deducted at Source (TDS)
1 marks easy
Case: Prabhat, 45 years old, Senior Manager-Finance at Nidhi Pvt. Limited with total earnings of ₹ 16,33,210. Employer contributes equivalent amount towards provident fund. Dearness allowance forms part of retirement benefit. Opted for Section 115BAC for A.Y. 2021-22 without submitting investment proof. Paid ₹ 55,212 medical premium for parents (aged above 60 years). Purchased house for ₹ 20,00,000 with home loan of ₹ 12,00,000 from HDFC (possession received 01/04/2021). Has 3 children in Samikshad International School with school fees of ₹ 97,000 (Child 1), ₹ 84,000 (Child 2), ₹ 1,08,000 (Child 3).…
In the above case, if Prabhat decided to avail for the salary paid to Mr. Sarthak based on the information submitted by him, is correct?
(a) Yes, the amount of ₹ 2,32,533 deducted as tax of source is correct.
(b) No, the correct amount of tax to be deducted at source is ₹ 2,49,800.
Q2GST - Input Tax Credit (ITC)
1 marks easy
Case: M/s A&S & Co., a partnership firm registered under GST
Determine the amount of eligible ITC to be claimed by the firm for the month of
(a) ₹73,000
(b) ₹1,18,000
(c) ₹1,45,000
(d) Nil
Q3Income Tax Computation
0 marks easy
What would be the total income (without rounding off) of Mr. Ram for the A.Y. 2021-22, assume that he does not opt for section 115BAC?
(A) ₹ 11,73,736
(B) ₹ 11,63,000
(C) ₹ 11,61,699
(D) ₹ 11,58,736
Q3GST - Output tax liability adjustment
1 marks easy
Case: M/s A&S & Co., a partnership firm registered under GST
Determine the amount of ITC to be added to the output tax liability.
(a) ₹60,000
(b) ₹80,000
(c) ₹1,00,000
(d) Nil
Q4Tax Liability
0 marks easy
What would be the liability of Mr. Sarthak for the A.Y. 2021-22, if he does not opt for section 115BAC?
(A) ₹ 1,60,530
(B) ₹ 1,58,870
(C) ₹ 1,71,210
(D) ₹ 1,67,430
Q4GST - Debit and credit notes
1 marks easy
Case: M/s A&S & Co., a partnership firm registered under GST
Which of the following is correct in respect of document to be issued by the firm for undertaking and encashment of invoice value?
(a) Debit note to be issued for ₹75,000
(b) Credit note to be issued for ₹18,000
(c) Debit note to be issued for ₹1,45,000
(d) Credit note to be issued for ₹45,000
Q5Chapter V-A Deductions
0 marks easy
Mr. Sarthak and his employer towards provided fund: what amount of deduction is available to Mr. Sarthak under Chapter V-A for the previous year 2020-21. If he does not provide any new fund for the year 2021-22?
(A) ₹ 2,62,500
(B) ₹ 2,50,000
(C) ₹ 2,50,000
(D) ₹ 2,04,000
Q5GST - Reverse Charge Mechanism
0 marks easy
Which of the following statements is correct in respect of supply of goods received by the firm which are taxable under reverse charge?
(a) I & ii
(b) I & v
(c) II & iv
(d) iv
Q6Residential Status
0 marks hard
Mr. Tejas, an Indian Citizen, left India permanently with his wife and two children, for running his retail trade business of toys in Canada in the year 2015. From Canada, he visited India in the months of April-June every year but during the year 2019-20 his visits India every year from 1st September to 31st January. His business income is ₹ 23,00,000 and ₹ 18 lakhs from retail trade business in Canada and in India respectively. Compute his residential status and income taxable in his hands for the A.Y. 2021-22.
(A) Resident and ordinarily resident in India and income of ₹ 18 lakhs and ₹ 23,00 lakhs would be taxable.
(B) Non-Resident and ₹ 18 lakhs from Indian retail trade business would only be taxable.
(C) Resident but not ordinarily Resident and ₹ 18 lakhs from Indian retail trade business would be taxable.
(D) Deemed resident and ₹ 18 lakhs from Indian retail trade business would only be taxable.
Q6GST - Gift of Residential Property
0 marks easy
A resident of Delhi, is having a residential property in Vasant Vihar, Delhi. He intends to gift the property to his brother, Z. Sh. gift amount. Determine whether Sahil is liable to pay GST on such gift.
(a) Yes, as services by way of renting is taxable supply under GST
(b) No, service by way of renting of residential property is exempt
(c) No, service by way of renting of residential property does not constitute supply
(d) Sahil, being individual, is not liable to pay GST
Q7TDS on Loans
0 marks hard
Mr. Rishi, a resident of India, has taken a personal loan of ₹ 50,00,000 from Canara Bank as per details during the previous year 2020-21. Date of withdrawals from Canara Bank: 01.05.2020 (₹ 25,00,000), 04.07.2020 (₹ 29,00,000), 07.10.2020 (₹ 14,30,000), 11.12.2020 (₹ 18,21,000), 12.02.2021 (₹ 26,23,000), 17.03.2021 (₹ 7,56,000). Date of withdrawals from State Bank of India: 27.04.2020 (₹ 15,50,000), 04.07.2020 (₹ 14,00,000), 17.03.2021 (₹ 16,13,000). She furnished her return of income for the A.Y. 2020-21 and A.Y. 2019-20 on or before the due date. If yes, at what rate and what amount would TDS be deductible?
(A) TDS is deductible at source on ₹ 33,78,000 @ 5% by Canara Bank and no tax is deductible by SBI.
(B) TDS is deductible at source on ₹ 20,20,000 @ 5% by Canara Bank and no tax is deductible by SBI.
(C) TDS is deductible at source on ₹ 20,20,000 @ 2% by Canara Bank and no tax is deductible by SBI.
(D) TDS is deductible at source on ₹ 70,00,000 @ 2% and ₹ 20,20,000 @ 2% by Canara Bank and tax is deductible at source @5% on ₹ 23,63,000 by SBI.
Q7GST - Taxes Subsumed
0 marks easy
Various taxes have been subsumed in GST to make one nation one tax market concept. Out of the following, determine which taxes have been subsumed in GST:
(A) (i)
(B) (i) and (ii)
(C) (ii)
(D) (i), (ii) and (iii)
Q8Professional Income Computation
0 marks easy
Mr. Roopesh (aged 32 years), an interior decorator, has professional receipts of ₹ 15,00,000 and ₹ 4,40,000 (net) and has paid interest of ₹ 4,68,000 on interest income on fixed deposits. The incurred expenses of ₹ 13,00,000 for his profession and ₹ 30,000 as interest on his investment in shares on which
Q8Total income, dividend income, audit threshold
0 marks easy
She received dividend. What would be her total income for A.Y. 2021-22, assuming that she wishes to make maximum tax savings without getting her books of account audited?
(A) ₹ 18,75,000
(B) ₹ 18,10,000
(C) ₹ 18,50,000
Q8CGST Act 2017 - Definition of Goods
0 marks easy
Goods as per section 2(52) of the CGST Act, 2017 includes:
(A) (i) and (ii)
(B) (ii) and (iv)
(C) (ii) and (iii)
(D) (i), (ii) and (iii)
Q9Loss from house property, carried forward losses, total inco
0 marks hard
Mr. Arjun (aged 55 years) submits the following particulars for the purpose of computing: Income from salary (computed): ₹ 4,00,000 Loss from let-out house property: (₹ 2,20,000) Brought forward loss from let-out house property for the A.Y. 2020-21: (₹ 20,000) Brought forward loss from let-out house property for the A.Y. 2019-20: (₹ 1,40,000) Bank Interest (FD) received: ₹ 80,000
Q9GST - Registration Threshold
0 marks easy
Y started a new business and makes following supplies in the first month: (i) Time supply of taxable goods amounting to ₹ 17 lakh (ii) Supply of exempted goods amounting to ₹ 1 lakh (iii) Inter-state supply of exempted goods amounting to ₹ 1 lakh. Whether he is required to obtain registration?
(a) No, Y is liable to obtain registration at the threshold limit of ₹ 10 lakh
(b) No, Z is not liable to obtain registration as he makes exempted supplies
(c) No, Z is not liable to obtain registration as he makes inter-state supply of goods
(d) No, Z is not liable to obtain registration as the threshold limit of ₹ 10 lakh is not
Q10Transfer of unlisted shares, capital gains, taxability
0 marks hard
Mr. Vikas is transferred 600 unlisted shares of XYZ (P) Ltd. on 15.12.2020 for ₹ 1,50,000 when the market price was ₹ 1,15,000. The indexed cost of acquisition of the said shares was ₹ 1,23,000.
Q10GST - Registration Requirement
0 marks easy
Vedding Bells, a wedding photographer, has commenced providing pre-wedding shoot services in major from the beginning of current financial year 2020-2021. It has provided the following details of turnover for the various quarters till December, 2020: Q 1 (Apr-2020-June 2020): ₹ 20 lakhs, Q 2 (Jul-2020-September 2020): ₹ 30 lakhs, Q 3 (October 2020-December 2020): ₹ 40 lakhs. Whether he is required to obtain registration?
Q11Residential status, person of Indian origin, gifts from rela
0 marks hard
Mr. Dmore, a person of Indian origin and citizen of Country X, got married to Mrs. Deepa, an Indian citizen residing in Country X on 4th February, 2020 and shifted to India for the first time. He is planning to settle in India permanently. Both of them visit Delhi on 20-21-2021 with his wife & spent some time with his parents-in-law for 50 days and shifted India during the previous year on 18.03.2021. He received the following gifts from his relatives and friends of her wife during 01-04-2020 to 31-03-2021: From married sister of wife: ₹ 1,15,000; From mother of his wife: ₹ 2,82,000
Q11GST - Services, Employee Remuneration, Reverse Charge, Sched
0 marks easy
As per Para 2 of Schedule 6 of the CGST Act, services by an employee to the employer in the course of or in relation to the employment are not supplies. However, they may also include the remuneration paid by the independent directors who are not employees of the said company to such company. In lieu of remuneration as the consideration for the said services. The query raised in the background of the said company is therefore liable. Further, such remuneration paid to the directors is liable to GST on reverse charge basis.
Q11(a)Residential status and total income computation
0 marks easy
Case: In the previous year 2020-21, Mr. Dhruv stayed in India for 94 days. His total income in a financial year exceeds ₹ 15,00,000. Determination of residential status depends on whether total income other than family income exceeds ₹ 15,00,000 and whether he stayed for 182 days or more.
Determination of residential status and computation of total income and tax payable of Mr. Dhruv. In the previous year 2020-21, he stayed in India for 94 days. His total income in a financial year exceeds ₹ 15,00,000. In case the total income other than income from family does not exceed ₹ 15,00,000, the said individual is said to be resident in India only if the individual has for a total period of 182 days or more during the previous year 2020-21.
Q12Resident but not ordinarily resident, income from house prop
0 marks hard
Mr. Roxx, a citizen of the Country Y, is a resident but not ordinarily resident in India during the financial year 2020-21. He owns two house properties in Country Y, one used as his residence and another let out. He also purchased a house property in India during 2019-20 from the sale proceeds of a house in India. The value of the CVD (3) may be taken as ₹ 78. He had taken a loan of ₹ 16,00,000 @ 8.51% from HDFC Bank on 15 August, 2018 for purchasing this flat. No amount is repaid by him till 31.03.2021. He also had a house property in Bangalore which is let out on a monthly rent of ₹ 40,000. The fair rent of which is ₹ 45,000 p.a. and Municipal value of ₹ 3,38,000 p.a. and Standard Rent of ₹ 4,20,000 p.a. He had taken a loan of ₹ 20,00,000 @ 10% from of
Q12GST - GSTR-3B Filing, Nil Returns, Electronic Filing, Return
0 marks easy
A taxable person is required to file GSTR-3B returns under GST law with specific provisions for nil returns and electronic filing.
Q13Income computation, capital gains, deductions, loss adjustme
0 marks hard
Case: Mr. Prakash furnishes the following information for the financial year 2020-21: Loss from speculation business X: ₹85,000 Profit from speculation business Y: ₹45,000 Interest on borrowing in respect of self-occupied house property: ₹3,18,000 Income from let out house property: ₹1,20,000 Premium paid towards trading and manufacturing business: ₹1,00,000 Salary from a company (foreign company): ₹5,25,000 Interest on PPF deposit: ₹65,000 Long capital gain on sale of Vacant site: ₹1,25,000 Short term capital gain on sale of plot: ₹1,50,000 Investment in tax saver deposit on 31.03.21: ₹60,000 Profi…
Compute total income of Mr. Prakash for the assessment year 2021-22 also show the loss, eligible to be carried forward. Assume that he does not opt for section 115BAC.
Q14Salary income computation, allowances
0 marks hard
Case: Mr. Ragee (aged 61 years) working in a private company from last 10 years. His salary details for the financial year 2020-21 are: Basic Salary: ₹1,70,000 p.a. Dearness Allowance (items part of retirement benefits): ₹80,000 p.a. Commission: ₹32,000 p.a. Transport Allowance: ₹5,000 p.a. Medical Reimbursement: ₹4,000
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Q14Computation of Total Income, Taxable Income, Deductions, Cap
8 marks hard
Compute the Total Income of Mr. Ragbir for the Assessment Year 2021-22 from the following particulars: Salaries: • Basic Salary: ₹1,70,000 x 8 • Dearness Allowance: ₹10,000 x 8 • House Rent Allowance: ₹5,000 x 8 • Transport Allowance: ₹5,000 x 8 • Medical reimbursement (Fully taxable) Gratuity: Amount received ₹25,00,000 [With notes regarding standard deduction u/s 16(ia) and partial exemption u/s 10(10)(ii)] Less: Standard deduction u/s 16(ia) Capital Gains: • On transfer of 60,000 shares (₹2,000 x 35%) - Seeds consideration • Less: Cost of acquisition, higher of - Actual cost or indexed cost per share Income from Other Sources: • Interest received from FD (2019-20 onwards) • Interest on bonds, shares, and other investments • Income from financial instruments Deductions: • Less: Deductions under Chapter V-A • Less: Deposits in PPF AS • Section 80CC, 80D, 80G and other applicable sections
Q15TDS, insurance proceeds, termination benefits
0 marks easy
Examine and explain the TDS implications in the following cases along with reasons briefly assuming that the deductees are residents and having a PAN which they have duly furnished to the respective deductors.